Grayscale’s Bitcoin ETF Registers Initial Inflow Following Losses of Billions Since January

The Grayscale Bitcoin Trust (GBTC), the largest spot bitcoin ETF, has recently witnessed a notable shift in its assets under management compared to BlackRock’s IBIT.

According to Farside Investors, GBTC experienced a net inflow of new investments, marking the first daily increase since its launch in January. On Friday alone, approximately $63 million flowed into the trust, as reported by Farside’s data.

Once the go-to choice for traditional investors seeking exposure to bitcoin without directly owning the cryptocurrency, GBTC faced increased competition in January. The emergence of nine rival spot bitcoin ETFs coincided with GBTC’s conversion into a more accessible ETF format.

However, GBTC’s higher fees led to significant capital outflows, resulting in a reduction of its bitcoin holdings from over 600,000 to approximately 290,000 bitcoins, according to compiled fund data.

Despite this challenging period, the recent Friday inflow marks a reversal in GBTC’s net withdrawals trend. Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) has emerged as a strong contender for the title of the largest bitcoin ETF. Currently, GBTC holds $18.1 billion in assets, slightly edging out IBIT’s $16.9 billion. Notably, IBIT, which started from scratch in January, has swiftly gained ground, while GBTC, initially boasting over $26 billion, has seen a decline in its dominance.